HMRC Warns Against Stamp Duty Rogue Agents: Stay Vigilant!
Following a recent Court of Appeal ruling, HMRC has announced a crackdown on fraudulent Stamp Duty repayment claims. Homebuyers are advised to avoid rogue agents touting misleading schemes that could result in significant penalties ... Stamp duty burden, Heavy tax on home buyers, Ouch, my wallet weeps As homeowners navigate the complexities of property purchases, it is crucial to understand the implications of Stamp Duty levies. Recent developments, particularly a landmark ruling by the Court of Appeal in the case of Mudan & Anor v HMRC, have put the spotlight on fraudulent practices concerning stamp duty claims. The ruling reaffirms that Stamp Duty Land Tax (SDLT) is chargeable on homes that retain the fundamental characteristics of a dwelling, regardless of their state of disrepair. Be careful of rogue agents!In recent months, rogue agents have proliferated in the marketplace, enticing unsuspecting homebuyers with promises of recovering substantial sums of Stamp Duty. They assert that by purchasing properties that are deemed uninhabitable, buyers can circumvent SDLT obligations. This tactic is not only misleading, but is likely to lead to long-term consequences. Following the Mudan case, where the appellants sought a hefty £99,750 repayment while asserting their newly purchased property was unsuitable for living, it has become increasingly clear that such claims are ill-advised. The Court's decision, articulated by Lord Justice Kim Lewison KC, underscored that properties with recent habitation, even if currently in poor condition, are still subject to Stamp Duty. Homebuyers should take note of the ramifications of these fraudulent claims, as HMRC has signalled its intent to tackle this emerging problem with both civil and criminal actions. Take, for instance, the scenario presented by HMRC involving a fictional purchaser of a £1.1m property in disrepair. The agent sought to claim a £9,250 refund on a ‘no win no fee' basis, leading to a reduced amount after the agent's cut. However, the purchaser found himself ensnared in compliance checks, at risk of repaying the entirety of the claimed refund, in addition to accruing interest and penalties. The agent vanished after getting their cut, leaving the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Would you like to know more? |
If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about Stamp Duty, rogue agents, or the habitability of a property you're thinking of purchasing, then do feel free to call me on 07434 287603 and let's see how I can help you. |
Share the blog love ... | |||||||||||||||||||||||
#HMRC #CourtOfAppeal #StampDuty #RepaymentClaims #RogueAgents |
About Helen Beaumont ... | ||
|
More blog posts for you to enjoy ... | ||
 | Nine ways to beat the Budget tax burden this year Here's my smart, simple guide to beat the Budget tax burden without drama. I'll cover pensions, ISAs, dividends, cash, IHT and more. Read this to prioritise your tax savings and plan ahead with calm planning ...... | |
 | Why splitting a business to avoid VAT can backfire badly Splitting a business to avoid VAT may look clever, but it often isn't. HMRC can join entities together where links exist and challenge the arrangement. Consider contracts, commercial reality, and long-term costs before acting... | |
 | How HMRC Christmas tax rules trip up festive side hustlers HMRC Christmas tax rules often surprise side hustlers each December. Here's what counts, what doesn't, and when to register. Stay compliant and keep more of your Christmas earnings ...... | |
 | Chancellor eyes pension salary sacrifice: a £5.1bn question Rumours in the media suggest the Chancellor may curb pension salary sacrifice in the Autumn Budget. Employers, employees, and HMRC see risks to take-home pay and saving habits. Here's what could really happen ...... | |
 | Why farmers need an inheritance tax transitional gifting rule now Older farmers face a cliff edge in April 2026. An inheritance tax transitional gifting rule could ease pressure and protect family businesses. Here's why it matters and what should happen next ...... | |
 | Inheritance Tax risk for family-owned businesses: act before reliefs shrink! Here's the lowdown on Inheritance Tax risk for family-owned businesses and why time matters. Reliefs are tightening, and proactive planning can save millions. Start now to secure business succession and family wealth ...... | |
 | A pension tax raid would put the NHS in danger A pension tax raid risks driving GPs to retire early and undermining new neighbourhood care plans. It could also destabilise NHS funding and deepen workforce gaps. Clarity on tax reforms is urgently needed, especially with th... | |
 | HMRC launches real-time HICBC payment for smoother PAYE HMRC's real-time HICBC payment lets employees settle the charge through PAYE. It's quick, accurate and avoids self-assessment for many. It's a practical win for households receiving child benefit ...... | |
Other bloggers you may like ... | ||
 | Are You An Overseas Visitor Looking To Stay In Milton Keynes? Posted by Emily Freeman on https://blog.shortstay-mk.co.uk Overseas visitors seeking a base in Milton Keynes will find we offer an exceptional range of serviced accommodations tailored to their needs. Discover ... | |
 | What to do when you feel stuck: practical steps to regain momentum Posted by Dave Cordle on https://blog.davecordle.co.uk Here's what to do when you feel stuck: reflect on what energised you, run small experiments, and ask for help early. This friendly guide gives practic ... | |
 | Did the Chancellor just save the economy, or was it just another tax heist? Posted by Roger Eddowes on https://blog.essendonaccounts.co.uk Did the chancellor just save the economy? My blog post today takes a look at the 2025 Autumn Budget's tax changes, winners, losers and risks. It weigh ... | |
 | What the abolition of Section 21 means for both landlords and tenants Posted by Sarah Hannaford on https://blog.sarahpasolutions.co.uk Here's a summary of the abolition of Section 21. Landlords will need valid legal grounds and evidence to evict, and tenants will gain more stability. ... | |